The following is a summary of the Movado Group, Inc. (MOV) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Movado reported nearly flat net sales on a constant dollar basis compared to last year, with a noted decline in operating profit to $3 million due to increased marketing investments.

• Gross margin remained healthy, although there was a slight decline compared to the previous year due to product mix.

• Inventory levels increased to support anticipated second-half sales; however, net profit for the quarter was lower at $3.7 million, or $0.16 per diluted share, due to the increased investments and challenging market conditions.

Business Progress:

• Introduced an extensive new advertising campaign featuring celebrities like Ludacris and Jessica Alba to enhance Movado brand equity and introduce it to new consumers.

• Launched several new products and lines, including BOLD Evolution tank collection and innovative offerings across licensed brands like Coach and Tommy Hilfiger.

• Movado.com saw a 21% increase, reflecting strong direct-to-consumer performance.

Opportunities:

• The new icons advertising campaign and increased marketing efforts are expected to drive higher consumer engagement and potentially increase market share.

• Expansion in the Indian market presents a significant growth opportunity for the Movado brand.

Risks:

• The global retail and watch category remains challenging with a heightened level of uncertainty; large customers are maintaining lower inventory levels, impacting sales.

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